BNZ – BusinessNZ
Performance of
Manufacturing
Index

Sluggish start to the year – PMI

14 Feb, 2020
49.6
January
+0.4

Monthly Change

contracting
slower rate

New Zealand’s manufacturing sector experienced a second consecutive month in contraction, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for January was 49.6 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  While this was up 0.4 points from December, the sector remains in contraction.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the mixed results for 2019 have continued to spill over into 2020.

“Looking at the key sub-index values, new orders (50.6) is still only just managing to keep its head above water, while production (49.9) has now been in contraction for three consecutive months.  Employment (46.9) also took a hit to reach its lowest mark since July 2019.”

“The proportion of negative comments in January (52.5%) picked up from December (44.9%).  In terms of the comments made, there were still seasonal effects at play, most notably the Xmas/holiday break.  However, there was also some discussion around uncertainty due to the coronavirus.”

BNZ Senior Economist, Craig Ebert said that “in the context of the latest global ructions – this time related to the COVID-19 virus – January’s PMI could arguably be read as a relatively decent outcome. At the same time, it is surely too early for the PMI to capture the economic consequences of the virus”.

Catherine Beard

Catherine Beard

Director, Advocacy BusinessNZ

BNZ - BusinessNZ PMI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PMI

Manufacturing Snapshot

The PMI

New Zealand’s Performance of Manufacturing Index (PMI) remained close to flat in January. Moving into a new year, but still going nowhere, it posted an index reading of 49.6, from 49.2 in December.
Read more

Global

Of course, it’s also too soon for the latest global PMI to be meaningfully indicating the disruptions from COVID-19. All the same, its January reading was interesting, in that it nudged up to a seasonally adjusted 50.4, from 50.1 in December.
Read more

Detail

With respect to the NZ PMI, at face value it looked as though new orders, at 50.6, were holding their own, while employment – which slipped to 46.9, from 49.6 – was letting the side down.
Read more

Food

One component of the NZ PMI to keep a particularly close eye on over coming months is Food, Beverages and Tobacco – for at least a couple of reasons.
Read more

Craig Ebert

Craig Ebert

Senior Economist, BNZ

Sponsor Statement

BNZ is delighted to be associated with the Performance of Manufacturing Index (PMI) and BusinessNZ.

This association brings together the significant experience of leading business advocacy body BusinessNZ, and business finance specialist BNZ.

We look forward to continuing our association with BusinessNZ and associated regional organisations, and to playing our part in the ongoing development of the New Zealand manufacturing sector.

PMI Time Series Table

The results are seasonally adjusted.

National Indicies Jan
2019
Sep
2019
Oct
2019
Nov
2019
Dec
2019
Jan
2020
BNZ – BusinessNZ PMI 52.8 48.8 52.6 51.2 49.2 49.6
Production 50.4 46.5 52.3 49.4 48.4 49.9
Employment 52.0 50.0 49.9 48.9 49.6 46.9
New Orders 52.7 51.1 55.9 53.8 50.4 50.6
Finished Stocks 54.5 49.1 48.8 49.5 52.7 50.5
Deliveries 54.7 47.3 51.4 52.4 50.1 48.2

BNZ – BusinessNZ PMI Time Series

January 2018 – January 2022

International Results

J.P. Morgan Global Manufacturing PMITM

03 Feb 2020
50.4

About the PMI

The BNZ – BusinessNZ Performance of Manufacturing Index is a monthly survey of the manufacturing sector providing an early indicator of activity levels.

A PMI reading above 50 points indicates manufacturing activity is expanding; below 50 indicates it is contracting.

The main PMI and sub-index results are seasonally adjusted.

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New Zealand's manufacturing sector saw another lift in expansion for August, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for August was 54.9 (a PMI reading above 50.0 indicates that manufacturing is...

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New Zealand's manufacturing sector rose back into expansion for July, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).The seasonally adjusted PMI for July was 52.7 (a PMI reading above 50.0 indicates that manufacturing is generally...

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New Zealand’s manufacturing sector remained under its long-term average level of activity for May, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

Slow grind – PMI

New Zealand’s manufacturing sector experienced a lower level of expansion during April, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

Our Contributors

The BNZ – BusinessNZ PMI contains data obtained through BusinessNZ’s regional organisations